The foremost limitation of the equivalent annual benefit method. Introduction: Equivalent annual benefit method (EAB) is used for making the capital budgeting decisions. This indicates the net present value of an investment as a sequence of equivalent cash flows for the life of the investment.

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Chapter 22.5, Problem 2CC

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To discuss: The foremost limitation of the equivalent annual benefit method.

Introduction:

Equivalent annual benefit method (EAB) is used for making the capital budgeting decisions. This indicates the net present value of an investment as a sequence of equivalent cash flows for the life of the investment.

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